Need To Know: Analysts Are Much More Bullish On Data#3 Limited (ASX:DTL) Revenues

Simply Wall St
·3 min read

Celebrations may be in order for Data#3 Limited (ASX:DTL) shareholders, with the analysts delivering a significant upgrade to their statutory estimates for the company. The consensus estimated revenue numbers rose, with their view now clearly much more bullish on the company's business prospects. The market seems to be pricing in some improvement in the business too, with the stock up 8.0% over the past week, closing at AU$6.75. It will be interesting to see if this latest upgrade is enough to kickstart further buying interest in the stock.

After this upgrade, Data#3's dual analysts are now forecasting revenues of AU$1.8b in 2021. This would be a decent 8.2% improvement in sales compared to the last 12 months. Before the latest update, the analysts were foreseeing AU$1.6b of revenue in 2021. The consensus has definitely become more optimistic, showing a nice gain to revenue forecasts.

See our latest analysis for Data#3

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Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. We would highlight that Data#3's revenue growth is expected to slow, with forecast 8.2% increase next year well below the historical 12% p.a. growth over the last five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 21% next year. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than Data#3.

The Bottom Line

The highlight for us was that analysts increased their revenue forecasts for Data#3 this year. They're also anticipating slower revenue growth than the wider market. Seeing the dramatic upgrade to this year's forecasts, it might be time to take another look at Data#3.

Of course, there's always more to the story. At least one of Data#3's dual analysts has provided estimates out to 2023, which can be seen for free on our platform here.

Of course, seeing company management invest large sums of money in a stock can be just as useful as knowing whether analysts are upgrading their estimates. So you may also wish to search this free list of stocks that insiders are buying.

This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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